The IRS recognizes several different types of non-profit organizations. Each has different tax implications.

501(c)(3) non-profit organizations are considered charitable in nature and they receive the most comprehensive tax advantages from the IRS.  The most common benefits are:

  • Individuals and organizations who donate funds, products, or services may be able to deduct the donation from their taxes.
  • Organizations classified as 501(c)(3) may be eligible for discounts on various products and services

Professional trade associations such as ASLA-MN are classified as 501(c)(6).  Organizations classified as 501(c)(6) have a lower tax burden than for-profit organizations, but contributions cannot be written off and they are not eligible for discounts.